Does the Regulatory Status of Bitcoin Affect the Security Risks of Physical Settlement? ▴ Learn

Does the Regulatory Status of Bitcoin Affect the Security Risks of Physical Settlement?

Yes, the regulatory status of Bitcoin directly affects the security risks. If Bitcoin is classified as a security or a commodity, it can be subject to regulatory requirements like mandated reporting, KYC/AML, and specific storage protocols.

Ambiguity or new regulations can lead to the risk of regulatory seizure or forced liquidation, adding a layer of non-technical security risk to the exchange's physical holdings.

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